MOSCOW: The Russian rouble was steady on Thursday, hovering in a narrow range between 60 and 61 against the dollar, while stock indexes climbed higher in light summer trade.
At 0752 GMT, the rouble was flat at 60.64 against the dollar and firmed 0.3% to 62.56 to the euro.
Volatility in the rouble declined recently after wild swings of the previous months when it hit a record low of 121.53 to the dollar on the Moscow Exchange in March and then rallied to a seven-year peak of 50.01 in June.
So far this year, the rouble is the best-performing currency thanks to capital controls Russia imposed to shield its economy and financial system from sweeping Western sanctions after sending tens of thousands of troops into Ukraine on Feb. 24.
A recovery in Russian imports this year can put some pressure on the rouble, but a significant weakening should not be expected, Alfa Capital analyst Alexander Dzhioev said.
Russian rouble firms towards 60 vs dollar, stocks mixed
“Steady currency inflows into the country are a fundamental support for the national currency,” Dzhioev said, referring to Russia’s current account surplus that more than tripled in the first seven months of 2022 to $166.6 billion.
The rouble could also see extra support from month-end tax payments that start next week and usually prompt export-focused companies to step up conversion of their foreign currency revenues to meet local liabilities.
On the stock market, the dollar-denominated RTS index rose 0.5% to 1,123.5 points and its rouble-based peer MOEX also added 0.5% to trade at 2,162.5 points.
The market could feel pressure from profit-taking ahead of an expected increase in downside pressure next week when Russia starts conversion of global depository receipts (GDRs) into shares, Alor Brokerage said in a note.
GDRs of Russian companies that were traded on foreign exchanges and held in Russian depositories will be automatically converted into shares on Moscow Exchange from Aug. 15 in an effort to reduce foreign control over such companies amid Western sanctions.
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